No, Tom, a hole near the bottom would let you pull the end of the bit toward you without the tool, using just fingers. In fact, the farther above the bottom plate your hole is, the easier it is to flex the shaft back in.
The handle is the only part that will still be outside the wall. If you insert a flex-bit in a wall, the shaft will be pointing just about straight up, and the bottom end of the bit will be gently against the outside wall.
The hook on the end pulls the bottom part of the shank back towards you, the Y-shaped part near the 'elbow' is the fulcrum, and you apply pressure to re-aim the tip of the bit. The handle is also manipulated to minimize damage to the drywall or plaster around the hole.
You usually end up looking somewhat like an angler trying to net a fish with one hand, while the other arm is way up behind you with the drill trying to jump out of your hand.
It's good to use the best length for the distance; the 6-footers are harder to control if there's a lot still outside the wall. Extensions are available, but I haven't needed one yet. (I'm sure I will, now that I've said that)
I usually put the bit into the wall before attaching the drill, but the job tell you which is better. One important thing is to watch the top end of the shaft; it's easy to mar ceilings and/or cabinetry.
I prefer the screw-point auger type of bit. It's harder to spin, but it drills faster than the other types. ( My 24-volt DeWalt has as much torque as most electric drills) Once the tip of the bit engages the wood, you don't need to keep flexing the shaft.
Another plus is that most flex-bits have hols in both ends for pulling the wire through the hole(s) you just made. It's a LOT easier to pull in the same direction in which you were drilling, as the shank is a lot thinner than the body of the bit.
And, Ernie, if it makes you feel any better, I even cringe when I say or type "you just need to....", so don't feel bad! It's always easier when the other guy is doing it, but it takes a lot longer when you're watching him!
Larry
www.fineelectricco.com